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Margin calculator and markup calculator for small businesses
The short answer
Markup is profit as a share of cost: (price − cost) ÷ cost × 100. Gross margin is profit as a share of price: (price − cost) ÷ price × 100. A part that costs $100 and sells for $150 has a 50% markup and a 33.3% margin. To price from a target margin, divide the cost by (1 − margin).
Enter what a product, part or job costs you and the markup or gross margin you want. See the price, your profit, and how markup and margin compare.
Your price
$300.00
- Profit
- $100.00
- Markup
- 50%
- Margin
- 33.3%
Markup to margin at a glance
- 25% markup
- 20% margin
- 33.3% markup
- 25% margin
- 50% markup
- 33.3% margin
- 75% markup
- 42.9% margin
- 100% markup
- 50% margin
How it works
Markup and margin both describe profit, measured against different numbers:
- Markup is profit as a share of your cost. A $100 part sold for $150 has a 50% markup.
- Gross margin is profit as a share of the price. That same $150 sale has a 33.3% margin.
The formulas: price = cost × (1 + markup), and price = cost ÷ (1 − margin). The mix-up costs money: an owner who wants a 50% margin but adds a 50% markup only gets 33.3%.
For labor, work out your rate with the hourly rate calculator, then put both on an estimate.
Common questions
What’s the difference between markup and margin?
How do I calculate gross profit margin?
What markup should I use?
Can margin be 100%?
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